Brazil is set to launch its inaugural panda bonds, aiming to raise up to 5 billion yuan ($735 million). This significant debut marks Brazil as the fifth sovereign issuer in China's domestic debt market within a year. Finance Minister Dario Durigan stated the move is a crucial "test" to facilitate Brazilian companies' expansion in China and offers a hedge against currency volatility for their investments.

Brazil is preparing to issue panda bonds, another indicator of the rising popularity of yuan-denominated assets amid a de-dollarisation trend.

Brazil has fired the starting gun on its first yuan bond, the headline of a government finance mission to China this week spanning debt and green deals.

Ministro Dario Durigan entregou carta de intenções ao presidente do Banco Popular da China